When does the remainder of my balance get forgiven?

When a creditor agrees to settle a debt, they are agreeing to accept a percentage of the original balance, in exchange for which they will forgive the remainder of the debt. The creditor will forgive the remaining balance of your debt when the settlement is paid within the time frame...

I received a settlement offer from my creditor, but when I log into my online account with my creditor to schedule a payment it still says I owe the full original balance. What’s going on? Is it safe for me to make a payment?

As long as you have a settlement letter from your creditor, it is safe to make a payment no matter what it says in your online account. The letter will supersede any other agreements you have with the creditor. Unfortunately, most creditors and collectors do NOT update your online account...

What is a settlement letter?

A settlement letter is a written offer from a creditor to settle a debt, and serves as legal documentation of this arrangement. A settlement letter is a legally binding agreement on both you and the creditor, and technically replaces your original contract with them. As long as you follow the...